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2018 (8) TMI 35 - SC - Indian LawsDishonor of Cheques due to insufficiency of funds - failure to rebut the presumption that the cheque is issued in discharge of a legally enforceable debt or liability - Section 139 of the N.I. Act - Held that:- Under Section 139 of the N.I. Act, once a cheque has been signed and issued in favour of the holder, there is statutory presumption that it is issued in discharge of a legally enforceable debt or liability - This presumption is a rebuttable one, if the issuer of the cheque is able to discharge the burden that it was issued for some other purpose like security for a loan. In the present case, the respondent has failed to produce any credible evidence to rebut the statutory presumption - The appellants have proved their case by overwhelming evidence to establish that the two cheques were issued towards the discharge of an existing liability and legally enforceable debt. The respondent having admitted that the cheques and Pronote were signed by him, the presumption u/s 139 would operate. The respondent failed to rebut the presumption by adducing any cogent or credible evidence. Appeal allowed - decided in favor of appellant.
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